Archives: Answers

Answer

Can the Shareholder use personal name on Title?

Hi, You should consult with an attorney regarding the legality of the contract. At a minimum, your grandmother should have received independent legal advice.

2023 TD1 Federal Form – line 7

Hi, Enter $15,000 on line 1 and 7 of form TD1. Enter $0 on line 8 since you are married and don’t meet the conditions for the eligible dependent tax credit. The total claim amount on line 13 should be $30,000.

is a medical corporation a qualified small business corporation

Hi, Your shares are not QSBC shares if your corporation did not carry on an active business in the 24 months prior to sale.

Will I Still be a tax resident in Canada?

Yes, you will still be a tax resident of Canada, which means you are taxable in Canada on your global income. To avoid double taxation, claim a foreign tax credit on your Canadian return for the American taxes paid.

Do US tax residents need to Report their cDN Corporations to the IRS?

If you become a US resident for tax purposes, you will need to file form 5471 with the IRS in respect of your Canadian corporation. In addition, you will be subject to Canadian departure tax when you leave Canada. I suggest that you dissolve the corporation and pay yourself a final cash dividend prior to … Continue reading Do US tax residents need to Report their cDN Corporations to the IRS?

Dividends from US real Estate

The income earned by your and your husband’s US C-corporation is classified as foreign accrual property income (FAPI) for Canadian tax purposes. If the corporate income tax paid (Federal + State) in the US is less than 25%, then you both will have a net income inclusion for Canadian tax purposes in respect of the … Continue reading Dividends from US real Estate

Can we buy Primary residence with Corporation in Canada ?

You can purchase a home through a corporation. The arrangement is such that the corporation uses its cash retained earnings in combination with a bank mortgage (if required) to purchase a property. You then become a tenant and pay fair market value rent to the corporation. There is risk involved with his strategy, because the … Continue reading Can we buy Primary residence with Corporation in Canada ?

Corporate taxes on dividends

I am assuming that all of the companies involved are Canadian corporations. In this case, your investment company can claim a tax deduction under section 112 of the Canadian income tax act for the dividends received. To do so, complete Schedule 3 of the T2 corporate tax return. In addition, if your investment company owns … Continue reading Corporate taxes on dividends

can we transfer existing business to new holding company?

Yes, you can transfer an existing business to a newly incorporated holding company on a tax-free basis by implementing a Section 85 rollover.  I need more information about your business and it’s existing set-up to answer your questions in more detail.

to send money to my son in canada

Your best option is to send money to your son as a gift.  Your son will not have to pay tax on the gift received, and there is no upper limit on the amount of the gift that you can give him.  A gift letter should be prepared and notarized.  Consider making a wire-transfer to … Continue reading to send money to my son in canada

is there any way to defer taxes on securities traded in Non-Registered Account?

No, you cannot defer capital gains on the sale of marketable securities held in a non-registered account.

T1135 required for cryptocurrency?

If the currencies are held on an exchange outside Canada, and the total cost amount is more than $100,000 at any time in the year, then form T1135 must be filed.

What are the tax implications of a Canadian parent company with a wholly owned U.S. Subsidiary holding/investing cash at U.s subsidiary level?

The following are the tax implications: The US C-corporation (subsidiary) will pay US federal income tax at a rate of 21%, plus applicable State Income Tax on its annual profits If the income earned is passive in nature, then there will be a small net income inclusion for the Canadian Parent Corporation in respect of the … Continue reading What are the tax implications of a Canadian parent company with a wholly owned U.S. Subsidiary holding/investing cash at U.s subsidiary level?

Extracting cash from corp that sold its only property (real estate)

It’s too late to add your spouse and income-split with her.  Other than repaying your shareholder debt, consider paying yourself a tax-free capital dividend (equal to one-half of the capital gain).

how to find undepreciated capital cost of rental property in brampton?

In your case, the UCC is equal to the purchase price + closing costs paid because you have not claimed any CCA to date.

Pin It on Pinterest